Shenzhen Airlines' assets seized as fuel bill bites, but profitability continues into 1Q2009

The ongoing economic recession is taking its toll on China’s airline industry. China’s largest private airline, Shenzhen Airlines’ USD26.5 million ticketing account was reportedly seized by the Second Intermediate People's Court of Beijing, as remittance for outstanding fuel debts owed to South China Bluesky Aviation Oil. The carrier cited fluctuating fuel prices and the economic recession, which had restricted the airline’s cash flow in 2008, for the default fuel bill. [721 words]

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This report contains the following subheadings:

• Completes acquisition of Mesa Air stake in Kunpeng Airlines
• Shows no sign of slowing down fleet expansion
• Domestic expansion continues
• Signs agreement with Shenyang Government to increase base capacity
• Considers establishing Jade Cargo subsidiary in Chongqing

This report contains the following charts and tables:

• Shenzhen Airlines current and future fleet plan: as at 23-Apr-09
• Shenzhen Airlines aircraft delivery schedule: as at 23-Apr-09
• Guangzhou Baiyun International Airport (seats per week as % of total)